Michaela
Elon Musk’s artificial intelligence startup, xAI, has reportedly secured $10 billion in combined debt and equity funding. The massive capital raise signals growing investor confidence in next-generation AI ventures.
According to CNBC, investment banking firm Morgan Stanley reported that approximately $5 billion of the total funding was raised through strategic equity investments, while the remainder came from secured notes and term loan financing.
The fresh capital injection is expected to bolster xAI’s ability to expand its infrastructure and advance the development of its Grok AI chatbots, as the company positions itself to compete more aggressively in the artificial intelligence space, particularly against perceived rival OpenAI.
Earlier this year, OpenAI completed a $40 billion funding round, bringing its valuation to an eye-popping $300 billion. Rival AI firm Anthropic also attracted new investment, raising its valuation to over $60 billion.
In a major strategic move in March, Musk sold his social media platform X to xAI, incorporating the company’s Grok chatbot technology directly into the platform. The transaction valued xAI at $80 billion and X at $33 billion, factoring in $12 billion in debt from X’s original $45 billion valuation. Musk had acquired X, formerly known as Twitter, for approximately $44 billion in April 2022.
Amid Musk’s recent business moves and the passing of the “One Big Beautiful Bill,” tensions with President Donald Trump have reignited. Trump is now increasingly fixated on Musk’s ventures beyond social media.
In a recent post on his social media platform Truth Social, President Trump remarked that, prior to Musk’s vocal endorsement of his presidential campaign, Musk was already aware of Trump’s opposition to the electric vehicle (EV) mandate. The EV mandate comprises government regulations requiring a specified percentage of vehicle sales to be electric by a set deadline.
President Trump asserted that Musk’s success has been significantly supported by government subsidies and proposed that the federal Department of Government Efficiency (DOGE) conduct a review of Musk’s companies to identify potential cost savings. Notably, this call for scrutiny comes just months after Trump publicly commended Musk’s contributions to the department.
“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” President Trump wrote.
Musk responded on X with a succinct message urging to “cut it all” signaling a clear move away from dependence on federal assistance.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
